This breakfast briefing will take a look at the outlook for the risk reduction market - looking in particular at how schemes can best prepare to conduct an insurance transaction, capacity in the market as well as the key factors that are likely to affect both pricing and demand.

Professional Pensions Investment Conference has gathered a great following and is a widely respected event which brings together senior decision makers within public and private sector pension schemes.

So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap,' ‘pension freedoms' or consultations around ‘value for money', says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).

In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.

Support for DC

IRELAND - Defined contribution (DC) pension schemes saw membership rise by 87% in nine years but have been unfairly tagged as inferior, according to the Irish Association of Pension Funds (IAPF).

The organisation said there were more Irish private sector workers in DC than defined benefit (DB) schemes, but their contribution levels were too low with employers and staff on average paying in 6% and 5% respectively.

Speaking at the organisation's DC conference today, Jerry Moriarty, director of policy, IAPF, said: "It is not the framework that makes the difference rather the contribution levels being paid. There is no such thing as a pensions 'free lunch'.

"The contributions will always drive the benefits," he added.

Dr Leonie Bell, managing consultant, Oxera, continued: "Research suggests that criticisms of DC schemes are often unfounded, as the risks associated with them are overstated while their advantages are downplayed."

As the National Pensions Reserve Fund (NPRF) reported a negative return of -10.5% for Q1 2008, conference attendees were also urged to not be alarmed at recent falls in pension value as a result of the economic crisis.

Bell said: "While we cannot predict the future, over 100 years of research finds that over a long investment horizon equities provide a significantly higher average return for a very small probability of being worse off compared to other, 'safer', investments."

Moriarty concluded: "Employees in particular need to take more responsibility in ensuring that they are making sufficient savings for the type of retirement they want.

"It is especially important that in the current economic environment that pension saving is not viewed as a luxury that can be cut back. When we all get to retirement it will be an absolute necessity."

The NPRF, which was established in 2001 to provide retirement income for public service and general social welfare funds, retained a 4.2% annualised return from its inception date.